LONDON: The British minister responsible for financial services and fighting corruption resigned on Tuesday after weeks of questions over her financial ties to her aunt Sheikh Hasina, ousted last year as prime minister of Bangladesh.

Tulip Siddig, 42, had repeatedly denied any wrongdoing and Prime Minister Keir Starmer said last week he had full confidence in her. She is the daughter of Sheikh Rehana, Hasina`s sister.

The resignation of a second minister in two months is a blow to Starmer, whose approval ratings have plunged since his Labour Party won the general election in July.

Siddig was handed the portfolio for financial services policy after the election, a role that included responsibility for measures against money-laundering.

In a statement, Tulip Siddig said although an investigation into her financial affairs found she had not breached the ministerial code of conduct, her position was `likely to be a distraction from the work of the government`.

`I have therefore decided to resign from my ministerial position,` she said.

Starmer swiftly appointed Emma Reynolds, who was a pensions minister, to Siddiq`s role.

Sheikh Hasina, who had ruled Bangladesh since 2009, is being investigated there on suspicion of corruption and money laundering. Hasina and her party deny wrongdoing. Siddig was named last month as part of Bangladesh`s investigation into whether her family was involved in siphoning off funds from Bangladeshi infrastructure projects.

The anti-corruption commission alleged financial irregularities worth billions of dollars in the awarding of a $12.65 billion nuclear power contract, saying Sheikh Hasina and Siddig may have benefited.

After facing further scrutiny over the use of properties in Britain linked to Hasina and her supporters, Siddig referred herself to the government`s independent ethics adviser.

Siddig lived in a north London property given to her family in 2009 by Moin Ghani, a Bangladeshi lawyer who has represented Hasina`s government, documents filed with Companies House and the Land Registry show.-Reuters